Indian renewable energy developer Avaada Group has reached financial close on approximately US$1.3 billion of debt to fund a 2.15GW portfolio of hybrid and solar projects in Gujarat and Maharashtra.
The financing has been provided by the State Bank of India, REC Limited and Canara Bank across four special purpose vehicles (SPVs).
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The portfolio includes 1.35GW of hybrid renewable energy projects, which comprise solar PV and wind, and 800MW of utility-scale solar capacity. The projects will supply electricity under long-term power purchase agreements (PPAs) to Maharashtra State Electricity Distribution Company Limited (MSEDCL) and Gujarat Urja Vikas Nigam Limited (GUVNL).
According to Avaada, the company is deploying more than 3GW of solar capacity and 450MW of wind capacity across multiple sites in Gujarat and Maharashtra. PV Tech has asked the company how this development pipeline relates to the 2.15GW portfolio.
Vineet Mittal, chairman, Avaada Group, said: “Our hybrid projects have been designed to deliver greater reliability and grid stability, while our solar projects will provide affordable clean electricity to Maharashtra and Gujarat under long-term power purchase agreements.”
“As we continue to scale, our focus remains unwavering—to deploy capital responsibly, commission these projects on schedule, create long-term value for all stakeholders and contribute meaningfully towards India’s ambition of becoming a global clean energy leader.”
The hybrid projects are designed to combine solar and wind generation to supply power to MSEDCL, while the standalone solar projects will provide electricity to GUVNL and MSEDCL.
The financing marks one of the larger renewable energy debt closings in India’s market this year as developers continue to secure funding for utility-scale projects backed by long-term offtake agreements with state distribution companies.
Recently, Avaada secured nearly US$950 million in debt financing for three utility-scale renewable energy projects, including what the company said is India’s largest financing transaction for a firm and dispatchable renewable energy (FDRE) project.
The financing coverd an FDRE project in Bikaner, Rajasthan, alongside two 300MW solar PV projects in Rajasthan and Gujarat. The FDRE project has a long-term PPA with SJVN, while the Rajasthan solar project is contracted with NTPC and the Gujarat project has an offtake agreement with the Solar Energy Corporation of India Limited (SECI).
